Your Exam Content Outline The following outline describes the content of one of the New Hampshire insurance examinations. The examination will contain questions on the subjects contained in the outline. The percentages indicate the relative weight assigned to each section of the examination. For example, 10 percent means that 6 questions will be drawn from the section on a 60-question exam, 10 will be drawn on a 100-question exam and 15 will be drawn on a 150-question exam. Producer's Property and Casualty Insurance Series 12-64 150 questions 2.5 hour time limit 1.0 Insurance Regulation 13% 1.1 Licensing Process (402-J:5, 6) Types of licensees Producer (402-J:2, 14) Producer with appointment (402-J:14) Business entity (402-J:6) Financial institutions (406-C:1 19) Resident versus nonresident (402-J:8, 16) Temporary (402-J:11) Maintenance and duration Renewal (402-J:7(II IV)) Change of address (402-J:7(VI)) Reporting of actions (402-J:17) Assumed names (402-J:10) Continuing education requirements (Reg 1302.03, 1302.04, 1304.03) Disciplinary actions Cease and desist order (417:12) Denial, suspension or revocation (402:49; 402-J:12) Penalties and fines (400-A:15(III); 402:42, 48; 402-J:12(IV); 417:10, 13) 1.2 State regulation Commissioner's general duties and powers (400- A:3, 15; 417:5, 14) Company regulation Producer appointment (402-J:14) Termination of appointment (402-J:15) Producer regulation Acting without a license (402-J:3, 13) Commissions (402-J:13) Conversion of funds by producer (402:53) Referrals (402:16-B) Controlled business (402:74) Fiduciary requirements (Reg 4301.01 4301.09) License to transact business (402:12) Unfair claim settlement practices (417:4(XV); Reg 1001.01.11, Reg 1002.01.20) Unfair insurance trade practices Misrepresentation (402:46; 417:4(I, II)) Twisting (402:47; 417:4(I)) False information and advertising (417:4(III)) Defamation (417:4(IV)) Boycott, coercion and intimidation (417:4(V)) Illegal inducement (417:4(VII)) Unfair discrimination (417:4(VIII)) Rebating (402:39 41; 417:4(IX)) Examination of books and records (400-A:37) Insurance fraud regulation (400-A:36-b(II); 417:23; RL 638:20) Consumer privacy regulation (Reg 3001 3006) 1.3 Federal regulation Fair Credit Reporting Act (15 USC 1681 1681d) Fraud and false statements (18 USC 1033, 1034) 2.0 General Insurance 11% 2.1 Concepts Risk management key terms Risk Exposure Hazard Peril Loss Methods of handling risk Avoidance Retention Sharing Reduction Transfer Elements of insurable risks Adverse selection Law of large numbers Reinsurance 2.2 Insurers Types of insurers Stock companies Mutual companies Fraternal benefit societies Reciprocals Lloyd's associations Risk retention groups Surplus lines Private versus government insurers Authorized versus unauthorized insurers Domestic, foreign and alien insurers Financial status (independent rating services) Marketing (distribution) systems 2.3 Producers and general rules of agency Insurer as principal Producer/insurer relationship Authority and powers of producers 1
2.4 Contracts Elements of a legal contract Offer and acceptance Consideration Competent parties Legal purpose Distinct characteristics of an insurance contract Contract of adhesion Aleatory contract Personal contract Unilateral contract Conditional contract Legal interpretations affecting contracts Ambiguities in a contract of adhesion Reasonable expectations Indemnity Utmost good faith Representations/misrepresentations Warranties Concealment Fraud Waiver and estoppel 3.0 Property and Casualty Insurance Basics 14% 3.1 Principles and concepts Insurable interest Underwriting Function Loss ratio Rates Types Loss costs Components Hazards Physical Moral Morale Negligence Elements of a negligent act Defenses against negligence Damages Compensatory special versus general Punitive Absolute liability Strict liability Vicarious liability Causes of loss (perils) Named perils versus special (open) perils Direct loss Consequential or indirect loss Blanket versus specific insurance Basic types of construction Loss valuation Actual cash value Replacement cost Functional replacement cost Market value Agreed value Stated amount 3.2 Policy structure Declarations Insuring agreement or clause Additional/supplementary coverage Endorsements 3.3 Common policy provisions Insureds named, first named, additional Policy period Policy territory Cancellation and nonrenewal Other insurance Nonconcurrency Primary and excess Pro rata Contribution by equal shares Property limits Limits of liability Per occurrence (accident) Per person Aggregate general versus products completed operations Split Combined single Restoration/nonreduction of limits Coinsurance Vacancy or unoccupancy Named insured provisions Duties after loss Assignment Abandonment Insurer provisions Liberalization Subrogation Salvage Claim settlement options Duty to defend Third-party provisions Standard mortgage clause Loss payable clause No benefit to the bailee 3.4 New Hampshire laws, regulations and required provisions New Hampshire Valued Policy Law (407:11) New Hampshire Insurance Guaranty Association (404-B) Standard fire policy (407:1 2-a, 22) Cancellation and nonrenewal (417-B; 417-C:1 4, 6) Binders (407:6) Concealment, misrepresentation or fraud (407:22; RL 638:20) Claim settlement time limits (407:12, 12-a; Reg 1002.05) Federal Terrorism Insurance Program (15 USC 6701; Public Law 107 297, 109 144, 110 160) Certificate of Insurance House Bill 419 eff 1/1/2012 4.0 Dwelling ('02) Policy 4% 4.1 Characteristics and purpose 2
4.2 Coverage forms Perils insured against Basic Broad Special 4.3 Property coverages Coverage A Dwelling Coverage B Other structures Coverage C Personal property Coverage D Fair rental value Coverage E Additional living expense Other coverages 4.4 General exclusions 4.5 4.6 Selected endorsements Special provisions New Hampshire (DP 01 28) Automatic increase in insurance (DP 04 11) Dwelling under construction (DP 11 43) 4.7 Personal liability supplement 5.0 Homeowners ('11) Policy 12% 5.1 Coverage forms HO-2 through HO-6 5.2 5.3 Section I Property coverages Coverage A Dwelling Coverage B Other structures Coverage C Personal property Coverage D Loss of use 5.4 Section II Liability coverages Coverage E Personal liability Coverage F Medical payments to others 5.5 Perils insured against 5.6 5.7 5.8 Selected endorsements Special provisions New Hampshire (HO 01 28) Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27) Permitted incidental occupancies (HO 04 42) Earthquake (HO 04 54) Scheduled personal property (HO 04 61) Personal property replacement cost (HO 04 90) Home day care (HO 04 97) Business pursuits (HO 24 71) Watercraft (HO 24 75) Personal injury (HO 24 82) Identity Theft 6.0 Auto Insurance 14% 6.1 Laws New Hampshire Motor Vehicle Financial Responsibility Law Required limits of liability (RL 259:61, 264:20) New Hampshire Automobile Reinsurance Facility Plan (Reg 1405) New Hampshire Commercial Auto Insurance Plan Uninsured/underinsured motorist (RL 264:15) Bodily injury Required limits 3 Cancellation/nonrenewal (417-A) Grounds Notice Notice of eligibility in Automobile Reinsurance Facility Plan (417-A:5(V)) Residency statement (417-A:3-b; RL 1406.01) Medical costs coverage (RL 264:16) After market parts regulation (407-D) 6.2 Personal ('05) auto policy Liability coverage Bodily injury and property damage Supplementary payments Medical payments Uninsured motorist / underinsured motorist coverage Coverage for damage to your auto Collision Other than collision Transportation expense Duties after an accident or loss General provisions Selected endorsements Amendment of policy provisions New Hampshire (PP 01 76) Towing and labor costs (PP 03 03) Extended non-owned coverage vehilces furnished or available for regular use (PP 03 06) Miscellaneous type vehicle New Hampshire (PP 13 32) Joint ownership coverage New Hampshire (PP 13 34) 6.3 Commercial auto ('10) Commercial auto coverage forms Business auto Garage Business auto physical damage Coverage form sections Covered autos Liability coverage Garagekeepers coverage Physical damage coverage Selected endorsements Lessor additional insured and loss payee (CA 20 01) Mobile equipment (CA 20 15) Auto medical payments coverage (CA 99 03) Drive other car coverage (CA 99 10) Hired autos specified as covered autos you own (CA 99 16) Individual named insured (CA 99 17) Pollution liability broadened coverage (CA 99 48; CA 99 55) 7.0 Commercial Package Policy (CPP) 10%
7.1 Components of a commercial policy Common policy declarations Common policy conditions Interline endorsements One or more coverage parts 7.2 Commercial general liability ('07) Commercial general liability coverage forms Bodily injury and property damage liability Personal and advertising injury liability Medical payments Supplementary payments Who is an insured Limits of liability Occurrence versus claims-made Claims-made features Trigger Retroactive date Extended reporting periods basic versus supplemental Claim information Premises and operations Products and completed operations Insured contract Pollution liability Pollution liability coverage form (CG 00 39) Pollution liability limited coverage form (CG 00 40) Pollution liability coverage extension endorsement (CG 04 22) 7.3 Commercial property ('07) Commercial property conditions form Coverage forms Building and personal property Condominium association Condominium commercial unit-owners Builders risk Business income Legal liability Extra expense Causes of loss forms Basic Broad Special Selected endorsements coverage Ordinance or law (CP 04 05) Spoilage coverage (CP 04 40) Peak season limit of insurance (CP 12 30) Value reporting form (CP 13 10) 7.4 Commercial crime ('06) General definitions Burglary Theft Robbery Crime coverage forms Commercial crime coverage forms (discovery/loss sustained) Government crime coverage forms (discovery/loss sustained) Coverages Employee theft Forgery or alteration Inside the premises theft of money and securities Inside the premises robbery or safe burglary of other property Outside the premises Computer fraud Funds transfer fraud Money orders and counterfeit money Other crime coverage Extortion commercial entities (CR 04 03) 7.5 Commercial inland marine Nationwide marine definition Commercial inland marine conditions form Inland marine coverage forms Accounts receivable Bailee's customer Commercial articles Contractors equipment floater Electronic data processing Equipment dealers Installation floater Jewelers block Signs Valuable papers and records Transportation coverages Common carrier cargo liability Motor truck cargo forms Transit coverage forms 7.6 Equipment breakdown ('11) Equipment breakdown protection coverage form (EB 00 20) Selected endorsement Actual cash value (EB 99 59) 7.7 Farm coverage ('03 Property) ('06 Liability) Farm property coverage form Coverage A Dwellings Coverage B Other private structures Coverage C Household personal property Coverage D Loss of use Coverage E Scheduled farm personal property Coverage F Unscheduled farm personal property Coverage G Other farm structures Farm liability coverage form ('06) Coverage H Bodily injury and property damage liability Coverage I Personal advertising injury liability Coverage J Medical payments Livestock coverage form Mobile agriculture machinery and equipment coverage form Causes of loss (basic, broad and special) Limits of insurance 4
8.0 Businessowners ('10) Policy 8% 8.1 Characteristics and purpose 8.2 Businessowners Section I Property Coverage Limits Loss conditions General conditions Optional coverages 8.3 Businessowners Section II Liability Coverages Who is an insured Limits of insurance General conditions 8.4 Businessowners Section III Common Policy 8.5 Selected endorsements Hired auto and non-owned auto liability (BP 04 04) Protective safeguards (BP 04 30) Utility services direct damage (BP 04 56) Utility services time element (BP 04 57) 9.0 Workers Compensation Insurance 7% 9.1 Workers compensation law Types of laws Monopolistic versus competitive Compulsory versus elective New Hampshire Workers' Compensation Law (RL Ch 281-A) Exclusive remedy (RL 281-A:8) Employment covered (required, voluntary) (RL 281-A:2(VI,VIII), 3, 5, 6, 18, 18-a) Covered injuries (RL 281-A:2(XI), 12, 14) Occupational disease (RL 281-A:2(XIII); 16) Benefits provided (RL 281-A:23 23-b, 25 37) Subsequent injury fund (RL 281-A:55) Federal workers' compensation laws Federal Employer Liability Act (FELA) (45 USC 51 60) U.S. Longshore and Harbor Workers' Compensation Act (33 USC 904) The Jones Act (46 USC 688) 9.2 Workers compensation and employers liability insurance policy General section Part One Workers compensation insurance Part Two Employers liability insurance Part Three Other states insurance Part Four Your duties if injury occurs Part Five Premium Part Six Selected endorsement Voluntary compensation 9.3 Premium computation Job classification payroll and rates Experience modification factor Premium discounts 5 9.4 Other sources of coverages Assigned risk plan (404-C:1 13) Self-insured employers and employer groups (404-C:5-a; RL 281-A:5-a 5-c) 10.0 Other Coverages and Options 7% 10.1 Umbrella/excess liability policies Personal (DL 98 01) Commercial (CU 00 01) 10.2 Specialty liability insurance Errors and omissions Professional liability Directors and officers liability Fiduciary liability Liquor liability Employment practices liability Cyber Security Identity Theft 10.3 Surplus lines and markets Licensing requirements 10.4 Surety bonds Principal, obligee, surety Contract bonds License and permit bonds Judicial bonds 10.5 Aviation insurance Aircraft hull Aircraft liability 10.6 Ocean marine insurance Major coverages Hull insurance Cargo insurance Freight insurance Protection and indemnity 10.7 National Flood Insurance Program "Write your own" versus government Eligibility Coverage Limits 10.8 Other policies Boatowners Difference in conditions 10.9 Residual markets Joint underwriting or joint reinsurance associations (412:26)